Moody's flips Zoetis to positive

Moody's Ratings revised its outlook for Zoetis Inc. to positive from stable.

The Baa1 senior rating and the prime-2 commercial paper rating were affirmed.

The company has exhibited conservative financial policies and strong earnings growth, even with competition on existing blockbuster products within parasiticides and dermatology.

In conjunction with good earnings growth, Zoetis has exercised more conservative financial policies, pursuing R&D-led organic growth initiatives rather than debt-financed acquisitions over the past few years.

While Zoetis may pursue debt-funded acquisitions over time, Moody's notes that the company's internal growth prospects are strong enough to sustain its positive earnings trajectory without external assets.

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